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(NPV with Varying Required Rates of Return) Berts, makers of gourmet corn dogs, is considering the purchase of a new plastic stamping machine. This investment
(NPV with Varying Required Rates of Return) Berts, makers of gourmet corn dogs, is considering the purchase of a new plastic stamping machine. This investment requires an initial outlay of $150,000 and will generate after-tax cash inflows of $25,000 per year for 10 years. For each of the listed required rates of return, determine the projects net present value. a. The required rate of return is 9%. b. The required rate of return is 15%. c. Would the project be accepted under part a or b? d. What is the projects internal rate of return?
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